Bombay High Court Adjudicates Dual Proceedings on Cooperative Housing Society Dispute Over Change of User and Structural Alterations. The Court Examines Legality of Converting Residential Flats to Nursing Home and Making Additions Without Consent Under Maharashtra Ownership Flats Act, 1963.

High Court: Bombay High Court Bench: BOMBAY
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Case Note & Summary

The matter involved two consolidated proceedings: a writ petition under Article 227 of the Constitution of India challenging an order of the Maharashtra State Coop. Appellate Court, and a first appeal from a decree of the City Civil Court, both arising from a dispute over the use of residential flats in a cooperative housing society building called Gladhurst at Santacruz, Mumbai. The dispute centered on whether defendant flat purchasers could change the user of their ground-floor flats from residential to a nursing home and carry out structural alterations without the consent of other flat purchasers. The original plaintiffs, who were other flat purchasers in the building, filed L.C. Suit No. 3005 of 1985 seeking permanent injunction restraining defendants from making any changes, mandatory injunction to restore the flats to their original condition, and a direction to the Municipal Corporation to revoke any permission granted for change of user. They relied on the terms of the agreements for sale, which restricted use to residential purposes, and on Section 7(1) of the Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963, which prohibits structural alterations without prior consent of all flat purchasers. The plaintiffs alleged that the defendants had made extensive alterations, including demolishing walls, changing door and window positions, and enclosing common areas, and had started using the flats for a nursing home without obtaining consent from the other flat owners or the society’s ad-hoc committee. The builder, impleaded as the first defendant, initially gave a conditional no-objection subject to other purchasers’ consent but later denied having granted permission for non-residential use, blaming the defendants for exceeding the scope of the permission. The Municipal Corporation stated that it had granted a no-objection for change of user based on the builder’s no-objection and subject to conditions. The defendants argued that the alterations were minor, that they had obtained necessary permissions from the builder and the Corporation, and that the suit was not maintainable. The Maharashtra State Coop. Appellate Court had passed an order on 19 February 1987, which was challenged in the writ petition, while the City Civil Court passed its decree on 24 April/2 May 2002, giving rise to the first appeal. The High Court, by its common oral judgment, heard both matters together and was considering the common questions of law and fact. The provided text of the judgment breaks off before the court’s analysis and operative decision, so the final holding and relief are not available from the excerpt. The court only summarized the pleadings and contentions of the parties.

Headnote

A) Cooperative Housing Society - Change of User and Structural Alterations - Section 7(1), Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963 - The dispute arose when defendant flat purchasers proposed to convert residential flats into a nursing home and carried out extensive structural alterations including demolition of walls and changes to doors and windows without consent of other flat purchasers; plaintiffs sought injunction relying on the statutory requirement for consent. The Court examined whether such actions require prior consent under Section 7(1) (Paras 5-9).

B) Municipal Law - Building Permission - Validity of Municipal Corporation No-Objection - Plaintiffs sought direction to revoke permission granted by the Municipal Corporation for change of user; the Corporation had granted no-objection based on the builder's conditional no-objection and subject to conditions. The issue was whether such permission could be validly granted in the absence of consent from all flat purchasers under the Ownership Flats Act (Para 12).

C) Civil Procedure - Injunction - Permanent and Mandatory Injunction in Flat User Disputes - Plaintiffs sought permanent injunction against further unauthorized alterations and mandatory injunction to restore flats to original condition, along with a direction to the Municipal Corporation to revoke permissions. The case involved balancing individual rights of flat purchasers against collective interests of the cooperative housing society (Paras 5, 8-9).

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Issue of Consideration

Whether the defendants could change the user of residential flats to a nursing home and make structural alterations without the consent of other flat purchasers under the Maharashtra Ownership Flats Act, 1963 and relevant Development Control Rules; Whether the Municipal Corporation permission for change of user is valid without consent of all flat purchasers.

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Law Points

  • Section 7(1) of the Maharashtra Ownership Flats Act
  • 1963 requires prior consent of all flat purchasers for structural alterations
  • Change of user of residential flats to non-residential purposes without consent may violate statutory provisions and agreement terms
  • Municipal Corporation permissions must align with requirements under ownership flats legislation
  • Cooperative housing society bye-laws and collective consent principles govern building use.
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Case Details

2006 LawText (BOM) (05) 18

Writ Petition No. 1812 of 1987 and First Appeal No. 129 of 2003

2006-05-05

S.C. Dharmadhikari, J.

2006:BHC-AS:9762

Gladhurst Coop. Housing Society Ltd. (Petitioner in WP) and Milan P. Shah & Ors. (Appellants in FA)

Dr.(Mrs) V.B. Shah & Anr. (Respondents in WP) and M/s.D.S. Raheja & Co. & Ors. (Respondents in FA)

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Nature of Litigation

Civil suit for permanent and mandatory injunction against unauthorized structural alterations and change of user of residential flats to nursing home in a cooperative housing society building.

Remedy Sought

Plaintiffs sought (i) permanent injunction restraining defendants from undertaking changes and using flats for non-residential purpose; (ii) mandatory injunction to restore the flats to original condition; (iii) direction to the Municipal Corporation to revoke any permission granted for change of user.

Filing Reason

Defendant flat purchasers proposed to use their flats as a nursing home and carried out extensive structural alterations including demolition of walls, changes to doors and windows, and enclosure of common areas without the consent of other flat purchasers, in violation of the building agreement and the Maharashtra Ownership Flats Act, 1963.

Previous Decisions

The Maharashtra State Coop.Appellate Court passed an order on 19-02-1987 in Appeal Nos. 468 and 469 of 1986; the City Civil Court passed a judgment and decree on 24-04-2002/02-05-2002 in L.C.Suit No.3005 of 1985.

Issues

Whether the defendants could change the user of residential flats to a nursing home without the consent of other flat purchasers? Whether the structural alterations made by the defendants required prior consent under Section 7(1) of the Maharashtra Ownership Flats Act, 1963? Whether the permission granted by the Municipal Corporation for change of user is valid in the absence of consent from all flat purchasers?

Submissions/Arguments

Plaintiffs argued that the defendants violated the terms of the agreement for sale and Section 7(1) of the Ownership Flats Act by changing user and making alterations without consent; the builder had not consented to non-residential use. Defendants contended that they had obtained no-objection from the builder and permission from the Municipal Corporation for change of user, and that the alterations were minor and permitted. The builder maintained that it gave a conditional no-objection subject to other flat purchasers' consent, which was not obtained, and that the defendants exceeded the scope of the permission. The Municipal Corporation stated that it granted no-objection to change of user based on the builder's no-objection and subject to conditions, after receiving an application from the defendants' architect.

Judgment Excerpts

These matters are directed to be heard together as they involve common question of law and fact. section 7(1) of the ownership Act does not permit any alterations in the structure without prior consent of the plaintiffs. the defendant Nos. 2 and 3 undertook and carried out various extensive alterations and changes in the said flat such as removal of partition walls, changing location and size of door and windows... the building Gladhurst situate at P.M.Road, Santacruz (W), Mumbai 400 054 in which flat Nos. 1 and 2 are situate should not be used for any purpose other than private housing. the Corporation approved the said application for change of user on 26th February 1985, on certain terms and conditions.

Procedural History

Original plaintiffs filed L.C. Suit No. 3005 of 1985 before the City Civil Court, Bombay. During pendency, the Maharashtra State Coop. Appellate Court passed an order on 19-02-1987 in Appeal Nos. 468 and 469 of 1986. The petitioner challenged that appellate order by filing Writ Petition No. 1812 of 1987 under Article 227. The City Civil Court subsequently decreed the suit on 24-04-2002/02-05-2002. Aggrieved, the plaintiffs filed First Appeal No. 129 of 2003. The High Court heard the writ petition and first appeal together as they involved common questions, and delivered a common oral judgment on 05-05-2006.

Acts & Sections

  • Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963: Section 7(1)
  • Constitution of India: Article 227
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